Jio and Airtel have engaged in strong competition for a higher market share in the Indian telecom sector. This case study examines the competition between Jio and Airtel in detail, examining their market strategies, product offerings, pricing structures, customer retention rates, and market shares.
One of India’s leading telecommunications providers, Airtel, has been in the business for more than 20 years and has built a solid reputation. On the other side, Jio, a relatively new competitor in the market, has revolutionised the sector with its inexpensive data plans and cutting-edge products. In order to gain insight into how their competitors are promoting industry growth, the study will examine the various facets of their competition, including their strengths and shortcomings.
Airtel Case Study:
Sunil Bharti Mittal started Airtel, formally known as Bharti Airtel Limited, an international telecommunications business in India, in 1995. Over 418 million people receive voice and data services from Airtel, which operates in 18 nations throughout Asia and Africa. With a market share of about 29.39% in India, Airtel is the second-largest telecom provider.
Strengths and Advantages:
- Broad Network Coverage: Airtel offers 4G and 5G services and has a large network coverage throughout India.
- Customer-centric Approach: Airtel has a strong focus on serving its customers and provides a range of services that are esigned with their needs in mind.
- Diversified Business: Broadband, DTH, and enterprise services are now part of Airtel’s business portfolio.
- Strong Brand Equity: In the Indian telecom sector, Airtel is a well-known and dependable brand.
Weakness and Disadvantages:
- Debt Burden: Airtel’s heavy debt load restricts its ability to invest in infrastructure and technologies.
- Limited Spectrum Availability: Airtel’s ability to extend network coverage and provide high-speed internet services is constrained by the limited spectrum that is available to it.
- High Level of Competition: Jio, which provides inexpensive data services, poses the greatest threat to Airtel.
Overall, with a varied business portfolio, extensive network coverage, and a high brand equity, Airtel is a significant player in the Indian telecom sector. However, it has difficulties like fierce rivalry, a lack of spectrum availability, and a heavy debt load. The measures adopted by Airtel to increase network coverage, diversify its line of business, save expenses, and interact with customers would aid the company in maintaining its position in the market and effectively competing with rivals.
Jio Case Study:
Jio, also referred to as Reliance, In 2010, Mukesh Ambani, the head of Reliance Industries Limited, created the Indian telecom business Jio Infocomm Limited. In September 2016, Jio launched its commercial operations and started providing 4G LTE mobile, broadband, and digital services.
Here is a synopsis of Jio’s past:
- In 2010, Reliance Industries Limited bought a 95% share in Infotel Broadband Services Limited, which had won the government of India’s auction for a licence to use 4G spectrum across the country.
- With a focus on 4G services, Mukesh Ambani announced plans to invest INR 1.5 lakh crore (about $20 billion) in the telecom industry in 2013.
- Jio conducted a preliminary launch of its services in December 2015 for Reliance workers.
- Jio officially launched its services in September 2016 and offered six months of free voice and broadband services to attract subscribers.
- Jio stated in December 2016 that it had added 50 million users in just 83 days, breaking the previous record for the fastest subscriber ramp-up by a telecom company.
- Jio claimed in March 2017 that it had reached 100 million customers in just 170 days, breaking another another record.
- Jio released its 4G VoLTE feature phone, the JioPhone, in July 2017 with a focus on the low-income and rural markets.
Strengths and Advantages:
- Jio’s revolutionary pricing model, which included initially providing free voice and data services and subsequently introducing affordable data plans, has allowed it to quickly build up a sizable subscriber base.
- large Network Coverage: Jio offers its consumers 4G and 5G services and has a large network footprint throughout India.
- High Investment in Technology and Infrastructure: Jio has made significant investments in technology and infrastructure, such as the construction of a pan-Indian fibre optic network, which have enabled it to provide high-speed data services and enhance the quality of its network.
- Jio introduced its broadband services, Jio Fibre, in September 2018, providing consumers with high-speed internet, telephony, and TV services.
Weakness and Disadvantages:
- Dependence on Data Services: Due to Jio’s emphasis on data services, its reliance on data revenues may be negatively impacted by changes to regulations or competition from other businesses.
- Limited Diversification: Jio’s revenue is primarily derived from the telecom industry, making it less diversified than other market participants.
- Customer complaints about Jio’s network, call quality, and customer service have been received. These issues may have an impact on customer loyalty in the future.
Through a series of investments from businesses like Facebook, Google, and others in 2020, Jio raised INR 1.52 lakh crore (US$20 billion), which aided in debt reduction and strengthened its market position.
With a market share of 36.32% as of 2022 and more than 447 million members, Jio is India’s largest telecom provider.
With its innovative pricing policies, emphasis on digital services, and investments in infrastructure and technology, Jio has completely changed the Indian telecom sector and emerged as a force to be reckoned with.
With its innovative pricing model, robust network coverage, and emphasis on digital services, Jio is a formidable competitor in the Indian telecom sector. However, it has difficulties such reliance on data services, a lack of diversification, and client concerns about network quality and customer service. Jio will be able to sustain its position in the market and effectively compete with other competitors thanks to its strategy to increase network coverage, broaden its business portfolio, engage with customers, and invest in infrastructure and technology.
Airtel vs Jio:
Among the top telecom firms in India are Airtel and Jio. Both businesses are well-established in India and provide a variety of goods and services to their clients. We will thoroughly examine and analyse the two businesses in this case study.
- Background and History: Sunil Bharti Mittal started Airtel, also known as Bharti Airtel, in 1995. It is one of the biggest telecom businesses in the world and has its headquarters in New Delhi, India. Broadband, digital TV, mobile and fixed-line telephony are just a few of the goods and services that Airtel provides.
Jio: Mukesh Ambani founded Jio, also known as Reliance Jio, in 2016. It is a division of Reliance Industries with its headquarters in Mumbai, India. Jio is a supplier of 4G LTE networks and provides a variety of goods and services, including as broadband, digital TV, and mobile and fixed-line phone service.
- Network Coverage: Airtel Airtel provides 2G, 3G, and 4G services and has a significant network presence in India. In India, Airtel offers extensive network coverage that includes both urban and rural areas.
Jio: Jio is an Indian supplier of 4G LTE networks and 4G services. Jio has made significant investments in its network infrastructure, and the country’s coverage of its services is fast growing.
- Products and Services: Airtel: Airtel provides a variety of goods and services, such as Internet, digital TV, and mobile and fixed-line telephone. Additionally, Airtel has introduced Airtel Payments Bank, which enables users to register bank accounts and conduct transactions using mobile devices.
Jio: Jio provides a variety of goods and services, such as broadband, digital TV, and mobile and fixed-line phone service. Jio has also unveiled JioMoney, a mobile-based digital wallet that enables users to conduct transactions.
- Pricing: Airtel’s pricing is reasonable and fluctuates according to the goods and services provided. Customers of Airtel can choose from a variety of plans and packages.
Jio: Jio is renowned for its innovative and fiercely competitive pricing. To increase its market share, Jio has a history of providing services for nothing or at steep discounts.
- Advertising and marketing: Airtel: Airtel has a reputation for running original and imaginative marketing campaigns. In order to promote its brand, Airtel has also teamed up with a number of athletes and celebrities.
Jio: Jio has a reputation for aggressive marketing and publicity activities. Jio has also teamed up with a number of athletes and celebrities to promote its brand.
- Customer assistance is provided by Airtel through a variety of channels, including phone, email, and social media. Airtel has a strong customer care presence in India.
Jio: Jio has received criticism for at times being slow and unresponsive with its customer support.
- Financial Performance: Airtel: Over the years, Airtel has consistently recorded outstanding financial performance and revenue growth. The quarter ended June 30, 2021, had an Airtel net profit of Rs. 284.2 crore.
Jio: Since its launch, Jio has also revealed impressive financial results. Jio made a net profit of Rs. 3,651 crore for the quarter that ended on June 30, 2021.
- Market Share: Airtel: With a market share of over 28%, Airtel is one of the biggest telecom providers in India.
Jio: With a 36.32% market share in the Indian telecom sector as of January 2022, Jio was the biggest telecom provider in the nation. Since its 2016 inception, Jio has been steadily expanding and upending the Indian telecom industry with its inexpensive internet services and novel products. It has a sizable customer base and is a leading participant in the Indian telecom sector thanks to its robust network coverage and fast 4G and 5G services.
Two significant telecom industry companies in India, Jio and Airtel, each have unique strengths and disadvantages. Airtel is a well-known company with a strong brand, numerous sources of income, and an emphasis on premium services. Jio, a relatively new competitor, has, on the other hand, upended the market with its inexpensive data plans, robust network, and emphasis on digital services.
Jio has eclipsed Airtel in terms of market share and is now India’s biggest telecom provider. With a sizable client base, a variety of revenue sources, and a strong focus on premium services, Airtel is still a formidable competitor.
Jio and Airtel both have distinctive business plans for competing in the market. While Jio is concentrated on growing its network coverage, diversifying its business portfolio, engaging with customers, and investing in technology and infrastructure to provide high-speed data services, Airtel is concentrated on providing premium services and investing in infrastructure and technology to improve customer experience.
In conclusion, Jio and Airtel are two significant participants in the Indian telecom market, each with a unique set of strengths and weaknesses. However, both companies have developed competitive strategies that allow them to thrive in the industry. Customers have benefited from the competition between Jio and Airtel since lower rates, better services, and more inventive items have resulted from it.